Tuesday, February 7, 2012
Sold Mpel At $11.71 for A Profit of $3,000
1) I cannot afford to lose in any one trade, in other words, I must win 100%.(due to my personal commitment)
2) I was wrong in predicting that Mpel has broke the important resistance at $12.00, in fact the important resistance was not broke, Mpel merely flirted with it for a brief interval.
3) The China Stock Exchange under "SSE" continues to tumble downward with due to news on China Economy slowing down. With today tumbling more than 1.68%. (Please refer to the chart of SSE at the bottom of this post)
4) DJIA has met the important and all time resistance of 12,800 which is at current level. (Please refer to the chart of DJIA at the bottom of this post)
Now, lets bring Wynn into the picture on why I have sold Mpel.
By right, if Wynn is beating the analyst estimates with a whopping 20%, Wynn stock should be moving up all the way. However, instead of going up, it is going down. There is definitely something fishy going on here. I believe that the fund manager, stock operators, and block traders know something that we don't know. It may be due to the slowing casino revenue growth in Macau which have yet to be reported. Anyway, it makes me think that what if Mpel reported growth in earning in the coming quarters, but Mpel is going nowhere, just like Wynn. Or to make matter worst, Mpel may report earning below analysts estimates, and it will send the stock down tumbling more than 10%. Either up or down on Mpel quarterly earning, it looks like Mpel stock is not going anywhere but down as per the example from Wynn.
To wrap things up here, I have sold Mpel for a profit of $3,000 and I wont be regretted by my action even Mpel will continue to move upward after today. In the past, I have always make mistake and lost lots of money due to my greediness of always wanted to make more money. However, sometimes, it is not worth the risk, in this case, for my Mpel trade, it is definitely not worth the risk to hold Mpel for the coming short term, as the overall market is very volatile now, a bad news from Europe of Asia can sent the world stock markets down and the whole world back into recession.
I have sold all the stock that I have invested in Mpel. I am currently 100% in cash position. I may initiate purchase in Mpel stock once it move down to the strong support at $8.50 level.
Last but not least, I would like to thank the our regular visitors, Dale and Zoozoocracker1@yahoo.com for their kind suggestion and advised on my Mpel trade.